CBH Grain awarded first Japanese MAFF tender

June 15, 2012
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by World Grain staff

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PERTH, AUSTRALIA — CBH Grain announced on June 14 that it has been awarded its first wheat tender through the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF). This is the first tender MAFF conducted since CBH Grain was accredited on June 8, 2012.
CBH Grain Acting Head of Marketing Rob Dickie said MAFF accreditation will enable CBH Grain, via its Japan office, to participate in the MAFF wheat tender process and subsequently import wheat directly into Japan.
“The sale was for 36,060 tonnes of MAFF ASW blend wheat, a blend of noodle and premium milling grade wheat, destined for east Japan for August shipment,” Dickie said. “Japan purchases around 900,000 tonnes of MAFF ASW from WA every year through a regular tender process conducted by MAFF. Only accredited trading houses are allowed to participate in the wheat tender process.”
This common style of tender process is used by many countries and works by multiple accredited bidders submitting their bidding price to a central organization and the contract being awarded to the business with the most competitive bid.
“Traditionally, CBH Grain has joined the regular tender with Japanese trading houses accredited by MAFF to present WA wheat for tender,” Dickie said. “CBH Grain has worked for almost two years to become the first WA grain buyer to become accredited under the MAFF system and now has direct access to offer wheat to the Japanese market through MAFF tenders.
“Achieving this accreditation brings WA wheat growers closer to Japanese end-users and enables CBH Grain to have greater control over the process of selling WA wheat to Japanese consumers. This direct link also allows for customer appetite levels to be fed directly back to WA growers through the CBH Grain supply chain.”
CBH Grain said it will continue to participate directly in MAFF wheat tenders when appropriate but has the option to work with its current Japanese trading houses when the requirement arises and will continue to engage in those long-term relationships where it adds values to WA growers.